UK business prepares for no-deal Brexit

UK firms are preparing for a no-deal Brexit as BoE Governor Mark Carney warned of the risk to the economy and Theresa May tried to sell her deal.

British PM Theresa May and Scottish First Minister Nicola Sturgeon

British PM Theresa May (L) has discussed Brexit deal with Scottish First Minister Nicola Sturgeon. (AAP)

Companies have begun triggering plans to keep operating if Britain leaves the European Union without an agreement, a "no deal" scenario the Bank of England said could plunge the economy into a crisis not seen since the 1970s.

With less than five months before Britain leaves the bloc, Prime Minister Theresa May is struggling to persuade parliament to back a draft divorce deal agreed with Brussels last week.

She won the backing of Bank of England Governor Mark Carney, who warned that a no-deal Brexit could hit the economy in a way not seen since the oil crisis that pushed many western nations into recession just after Britain had joined what is now the EU in 1973.

But the warnings and a charm offensive launched by May to court public opinion have done little so far to win over her critics, who are trying to force her to change tack over Brexit.

Northern Ireland's Democratic Unionist Party, which props up May's minority Conservative government, again said it would vote against her deal in parliament.

"All of our efforts are directed along with a large number of Conservative MPs from both the remain camp and the leave camp as well as opposition parties to defeat this deal and force a rethink," the DUP's Brexit spokesman Sammy Wilson told Sky News when asked if his party would bring down May's government.

But the party's deputy leader, Nigel Dodds, softened the tone, by leaving open the possibility of the party continuing to support May's government on domestic issues.

The prime minister was banking on opposition to what is a draft divorce deal fading after an attempt to unseat her by pro-Brexit Conservatives seemed to be fizzling out.

As an olive branch to those Brexit campaigners, her spokesman signalled May was open to looking at their proposed technological solutions to keep the border open on the island of Ireland.

May will meet European Commission President Jean-Claude Juncker in Brussels on Wednesday to discuss an agreement on future ties before EU leaders are due to rubber-stamp the divorce deal on Sunday.

She will also host Austrian Chancellor Sebastian Kurz on Thursday.

But one eurosceptic MP, Jacob Rees-Mogg, stood firm, saying May had taken a "deliberate decision not to deliver a proper Brexit" and that her opponents were adhering to the mantra that "patience is a virtue" in their attempt to oust her.

May has warned MPs they have a simple choice: back her deal or risk ushering in a no deal departure, a delay to Brexit or possibly no Brexit at all.

May also told Scotland's First Minister Nicola Sturgeon on Tuesday that the Brexit deal will work for all parts of the UK and deliver on the results of the 2016 referendum.

May's office said after her meeting with Sturgeon: "(It) will give Scottish businesses the clarity and certainty they need to protect jobs and living standards and see us take back control of our waters, improving the fortunes of our fishermen."

The EU is due to hold a summit to discuss the draft deal on November 25. Some eurosceptic ministers in May's cabinet want her to rewrite parts of it, though on Tuesday, Ireland's foreign minister, Simon Coveney, said the draft text was in fact the text and would not be reopened.


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Source: AAP



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